Finance for cleaning businesses, shaped around how you get paid.

Invoice finance advances up to 80 to 90 per cent of each month’s invoices within a day or two so weekly wages are covered while clients take 30 to 45 days, and a line of credit fills the gaps. The facility grows with each new contract, which is exactly when the wage gap widens.

Yes. Ride-on scrubbers, sweepers, pressure cleaners, carpet extraction machines and fitted-out vans are financed as equipment and vehicles over three to five years, with established businesses usually approved on low documentation. Smaller items can be bundled into one contract.

Yes. Insurance premium funding spreads public liability, workers compensation and vehicle insurance premiums over monthly instalments instead of a lump sum at renewal, which suits cleaning businesses with large policies and thin margins. It is quick to set up and separate from other borrowing.

Signed contracts or service agreements, consistent invoice income in the bank statements, wage costs under control, tax up to date and a clean credit file. Because cleaning debtors are often commercial and government clients, invoice finance is well priced and quick to approve.

Invoice finance lets you draw an advance against unpaid customer invoices, typically 80 to 90 per cent of the invoice value, within 24 to 48 hours of issuing the invoice. When your customer pays, the financier releases the remaining balance less their fees. It turns money you have already earned into working capital without waiting 30, 60 or 90 days for payment. It is used by businesses that sell to other businesses on payment terms, such as wholesalers, labour hire, transport and manufacturing.

With invoice factoring the financier manages your sales ledger and collects payment from your customers, who are usually told about the arrangement. With invoice discounting you keep control of collections and the facility can be confidential, so customers pay you as normal. Factoring suits smaller businesses that want the collections handled; discounting suits businesses with an established credit control process. Both advance funds against the same invoices, and the cost and eligibility differ between lenders.

Only if you choose a disclosed facility. Confidential invoice discounting is widely available in Australia and your customers continue to pay you directly, with no notice on the invoice. Disclosed factoring notifies customers to pay the financier, which some businesses prefer because collections are handled for them. Your broker explains which lenders offer confidential facilities and what each requires, such as a minimum turnover or an established ledger.

Invoice finance is usually priced as a discount charge on the funds advanced, quoted as a rate for each 30 days the invoice is outstanding, plus a service or administration fee on the invoice value. The total cost depends on how long your customers take to pay, the size of your ledger and the quality of your customers. The clearest comparison is the cost per $1,000 of invoices financed over your typical payment cycle, which your broker calculates for each lender before you decide.

Eligible invoices are for goods delivered or services completed, issued to another business or a government body on standard payment terms, usually 30 to 90 days. Invoices to consumers, invoices for work not yet finished, progress claims under construction contracts and disputed invoices are generally excluded. Lenders also look at the creditworthiness of your customers, because they are the ones who ultimately pay. A spread of reliable customers strengthens the application.

It depends on whether the facility is recourse or non-recourse. Most Australian invoice finance is recourse, meaning if a customer has not paid after an agreed period, commonly 90 days, you repay the advance or replace the invoice with another. Non-recourse facilities include debtor protection so the financier carries the loss for approved customers, at a higher cost. Your broker explains the recourse terms and the concentration limits before you sign.